Plug Power and Amazon sign agreement for multi-site GenKey deployments

By DC Velocity Staff

Plug Power Inc. has reached an agreement with Amazon to utilize Plug Power fuel cells and hydrogen technology in Amazon's fulfillment network. At select fulfillment-center locations, Amazon will begin powering its industrial equipment, such as forklifts, using the GenKey technology, which will enable faster charging times and reduced costs, and support energy efficiency in Amazon's fulfillment operations. Revenues associated with the commercial agreements are expected to be around $70 million in 2017.

"This agreement is a tremendous opportunity for Plug Power to further innovate and grow while helping to support the work Amazon does to pick, pack, and ship customer orders," said Andy Marsh, CEO of Plug Power, in a statement.

Additionally, Amazon and Plug Power will begin working together on technology collaboration, exploring the expansion of applications for Plug Power's line of ProGen fuel cell engines.

Plug Power has granted Amazon warrants to acquire up to 55,286,696 of Plug Power's common shares at $1.1893 per share. Vesting of the warrants is tied to payments totaling $600 million in the aggregate made by Amazon, directly or indirectly, in connection with the purchase of goods and services from Plug Power. An adjustment to the share price will occur after the first 34,917,912 warrants have vested. The details of the warrants and vesting are described in more detail in a report on Form 8-K, filed by Plug Power with the SEC on April 5.